21 Dec 2020
Ex-Pat & Foreign investor Stamp Duty Deadline
All the news about Stamp duty at present is around the impending ‘potential’ end of the holiday on 31st March 2021 (and quite rightly so). However, there is a segment of buyers that may be less well informed of the implications to their purchase should they not meet the deadline. That is those purchasers that are non-resident such as Ex-Pat’s or Foreign buyers.
As part of the 2020 Budget the Government announced a specific increase in Stamp duty of an additional 2% for all people purchasing in the UK that are currently non-resident, therefore classed as Ex-Pats or Foreign purchasers. The idea behind this was to level the playing field making it cheapest to buy if you are first-time buyer, more expensive as a second homeowner (additional 3%) then, the most expensive if you are purchasing from outside the UK (another additional 2%).
Should we revert to the standard rates of stamp duty in April, many purchases will see themselves with an additional bill they weren’t expecting.
For example, an Ex-Pat completing in April 2021 on a property valued at £600,000 will pay an effective rate of 7% meaning a bill of £42,000 that is an additional £12,000.
Please ensure if you or a client of yours is looking to purchase, this extra potential cost is factored into their calculations.
For advice or help please get in touch.